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Innovation and competitiveness in the copper-mining GVC: developing local suppliers in Peru

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  • Penny Bamber
  • Karina Fernandez-Stark
  • Oswaldo Molina

Abstract

Although Peru is one of the main producers of copper worldwide, the domestic industry has not yet fully taken advantage of the potential that the exploitation of this commodity offers. This paper explores the opportunities and challenges that Peruvian suppliers face in their insertion into the mining global value chain. Our analysis is based on a mixed-methods approach, combining both quantitative and qualitative primary and secondary sources, including semi-structured interviews with key actors in the Peruvian mining sector. Our findings suggest that the weak presence of Peruvian suppliers in a sector dominated by few foreign firms is due to global industry dynamics as well as the underdeveloped capabilities of local firms operating in a fragile local institutional setting. However, their opportunities for their insertion are primarily in areas where new solutions are required, which places a demand on the supplier’s innovative capacity.

Suggested Citation

  • Penny Bamber & Karina Fernandez-Stark & Oswaldo Molina, 2024. "Innovation and competitiveness in the copper-mining GVC: developing local suppliers in Peru," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(4), pages 940-964.
    • Handle: RePEc:oup:indcch:v:33:y:2024:i:4:p:940-964.
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